Legal Question in Real Estate Law in Texas
I have entered into a contract on buying a house. I have completed the Home Inspection and Appraisal.
I have also paid the escrow/option amount (1% of home value).
Two days before the Closing the Title Company found that there was a lien on the house by a Credit Card company. The Seller of the House does not have the money to pay them.
What options do I have if the Seller cannot pay of the lien? As a buyer can I revoke the contract? In that case how do I get back all the money I paid (Home Inspection Appraisal and escrow/option amount)
2 Answers from Attorneys
Assuming this house was the seller's homestead, then the credit card judgment lien does not apply to the homestead property. If the Seller chooses to pay the lien, then the title company can apply part of the proceeds of the sale to satisfy the lien.
As a buyer, you wouldn't be revoking the contract, the seller would be in breach. If they fail to deliver the house, then you may be able to sue for damages (i.e. the appraisal, etc.)
Dave
http://leonlaw.com/askalawyer
Keep in mind, that if you do sue for damages, all you may get is an uncollectible judgment. Hopefully the house is the Seller's homestead and the money judgment will not have attached to the property. If the title company doesn't understand this law, you may need to change title companies.
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